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Profits halve at John Lewis

Friday 15 September 2017

DR GORDON Fletcher, retail expert at the University of Salford Business School, comments on figures out today which show that profits at John Lewis have halved in the past twelve months.

Dr Fletcher said: “The halving of profits within the John Lewis partnership is a signal of continuing tough times for the traditional retail sector. 

“Although the drop in profits is partly a result of reorganisation this itself reflects the ongoing challenge of online retailers whose margins are invariable smaller and volatility is greater. 

“This intense competition can be coupled with the most tangible impact of the Brexit vote and negotiations - the reduction in the value of the pound against other major currencies. The result is that imports from anywhere in the world are now more expensive.

"The latest reports from the Office of National Statistics also confirm very little increase in overall retail sales for the past few months. With conservative retail purchasing becoming the norm, consumers are equally reluctant to bear the burden of any retail price increases that come from increased production costs while wages continue to fail to keep pace with inflation.

“It is not hard to see why profits are down at John Lewis.”

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Sam Wood

0161 295 5361